Short Term Uranium Not Looking Promising

April 1, 2008 | By | Reply More

Turning to uranium, things are not looking too promising in the short term according to the technicians.

Fibbonacci, MAs etc are all indicating weakness and fundamentally there is nothing much going on to contradict this outlook.

Sooner or later we think that the world is going to wake up to the fact that nuclear is the only viable energy replacement for the fossil fuels that continue to pollute the planet and, with the exception of coal, are a rapidly depleting resource.

Looking to the long term, this just might be a time to look very closely at the leading producers, Cameco (CCJ: NYSE) comes to mind, but a note of caution if you fancy this sector, there are a host of recent start ups in the exploration category that should be avoided.

Not only will there be ongoing problems raising capital, lack of expertise amongst the execs and the majority fading into oblivion but there is powerful public and political resistance to uranium mining in many areas throughout the world.

Also bear in mind that there is no perceived likelihood of a shortage of uranium in the ground so lack of supply is unlikely to be an issue.

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Category: Uranium

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